, 1887-06-09
ALASKAN HISTORY.
SOMETHING ABOUT 1.-THE WESTERN
UNION RUSSIAN EXTENSION"
Tho Days When Transatlantic Teleg-
raphy Was Yet an Experiment--soine
inside History About the Purchase oi
Alaska.
Especial Correspondence.l

Especial Correspondence.l
ROCHESTER,, N. y, May 1s.
An investigation of the rumor widely
afioat in the newspapers that Alaska, for
which the United States government paid
s7,2O0.OOO in 1867, might have been bought by
Hiram Sibley, president OF the western
Union Russian Extension" for s750,0OO. in
1866, brings to light an interesting chapter In
the history of Alaska and of the magnetic
telegraph.
The early summer of 1865 saw the two
great enterprises of telegraphy-the Atlantic
cable and the Russian overland telegraph
running q race, as 1t were, for the earth's
magnetic girdle. The Atlantic Cable COM
pany, after four disastrous efforts and the
loss of two cables and millions OF dollars, to
say nothing of public confidence in "long
submarines" was slowing away in the capa-
cious hold OF the Great Eastern the gigantic
coils of another venture. Atlantic stock
could be bought for song-and the song of
the seller was Joy at getting rid of it at all.
Russian stock was booming and in demand at
from 80 to 90 per cent. above par. The world
believed in the grand international Western
Union extension, by which the telegraphic
systems Of Russia and the United States we're
to be united via Behring straits at the
mouth of the Amoor, the Pacific port of ST.
IBERIA.
Overtures for the purchase Of the rights Of
the Russian American Fur company in the
interest Of the Russian overland, or Collins
line, as it was commonly called, had been
made to that venerable monopoly and autoc-
racy Of Alaska by Mr.. Collins, the ori. inator
Of the line, and by our minister at the Court
of st. Petersburg, Hon. Cassius NJ. Clay.
49,
The consent OF the Russian government
would have to be obtained before transfer
Of the rights OF the Russian American Fur
company could be made, and something more
than the word and bond OF private citizen
like Mr.. Collins would be required. This was
before the Western Union had adopted the
project which had reached the point where
capital, pluck and executive ability were de-
manded. Collins naturally looked to Hiram
Sibley, the motive power In the federation Of
the Western Union and the building of the
Pacific telegraph. Mr.. Sibley gave hearty
Endorsement to the scheme, and the contract
between the Western Union and Collins was
signed in Rochester, N. Y, May 9, 1864.
The China branch line was to be one Of the
many important evolutions of the Russian
Overland" the one making the acquisition of
the rights of the Russian American Fur COM
puuy ueNilaDtc III 10 neIOCl-
ate for these rights, and to secure in the con-
tract to be signed between the Russian gov
ernment and the Western Union a correct
Interpretation OF certain clauses, Sibey and
Collins went to St Petersburg i'm the winter
OF 1S64-1S65. Mr.. Sibley carried with him an
important paper. 1t was a statement OF the
financial condition Of the Western Union
company and its relation to the Russian
Extension, signed by the president and secre-
tary of the Western Union Russian Exten-
sion, with certificate OF Endorsement signed
by the governor of the state of New York, to
which were appended letters confrmatory
from the leading bankers Of the city of New
York, vouching for the undoubted response
bilty and liability, not only Of the Western
Union Russian Extension, but Of its president
indvidually-the bearer OF the letter. Upon
this paper Mr.. Sibley obtained in London a
letter Of credit for s750,OOO, with which and
his credentials he was amply prepared for
any emergency.
He was seeking the accomplishment of two
objects. First, a satisfactory contract be-
tween the Russian telegraph department and
the Western Union. Second, a perpetual
lease for the route Of the telegraph through
the territory of the Russian American COM
pany.
He gained all he sought in the contract.
The other matter seemed far easier Of solu-
tion, for the rights OF the Russian Fur com
pany were in the market. The financial
troubles of the great monopoly were no Sc
cret. There were complications between the
Russian Fur company and the Hudson Bay
company. 1t looked as IL the former might
sell out to the latter and so place England
virtually in possession of Alaska, state OF
things Russia did not like to contemplate
and yet Russia did not want to assume the
protection Of trade and commerce in Alaska
as size must IL the affairs of the Russian Fur
company were transferred to the govern
ment. The Alaska problem was a vexatior
to Russia. That the great telegraph project
would finally solve that problem was believed
in financial circles by those who had no GER
tain knowledge that overtures tending Il
such q solution had been made by eithel
party.
"Hiram Sbley," writes Cassus NJ. Clay
our minister to the court Of st. Petersburg a
the time, "was the first to talk of buying
part Of Alaska for the placing and manage
ment of the telegraph line and plant. Under
his instructions was sounding the Russian
government. The Western Union Russian
extension was first In suggesting to the Rus
sian government the sale of the province o
Alaska, and / pressed upon Mr. Sibey tn,
possession of the land for telegraph purpose
in perpetuity."
When Mr.. Sibley was approached upon tn
subject of buying up the rights of the Russian
American company he quietly set about as
certaining the exact condition of the com
pany's financial affairs and the result Of
thorough investigation was to convince hin
that the concern was verGing on bankruptcy
that "the catch" was declining, and that il
rights were within easy reach OF tue Western
Union.
"Why pay $'50,OO0 for the rights of tn
Russian American company" asked Prime
GortschakoH Of Mr.. Sioley, "when for tha
sum you can get the fec simple to the trac
you wantp
The contemplated track was strip extend
, ing from the coast inland from I5O to 80
miles-the plum of the Alaska pudding.
**%
Aug &C. 1896, the Atlantic cable proved
success. In the worldwide enthusiasm owe
its operation, the Russian Overland was for
7 yoftap " ha ,t,b1ic Tha first ,,,,x,. fvs.